SerpApi.Org
Siemens Energy (SMEGF) (SMERY) down 8.8% in Wednesday's trading following a similar decline in shares of peer GE Vernova (GEV) after the gas turbine maker reported Q2 core profit and issued full-year revenue guidance that missed market expectations.
Siemens Energy (SMEGF) (SMERY) investors are concerned about whether GE Vernova's (GEV) announced orders are binding following the results of its U.S. peer, but the corresponding sharp drop in Siemens Energy shares is not justified, J.P. Morgan analysts said.
The read-across to Siemens Energy (SMEGF) (SMERY) is unwarranted as the German company is more focused on confirmed orders, and GE Vernova's (GEV) expanded capacity has raised concerns about oversupply, but the JPM analysts continue to see demand outstripping supply through 2028.
"Evidently, demand is still very strong and supply is still materially too low versus demand, for now at least," J.P. Morgan said in a note.
Siemens Energy (SMEGF) (SMERY) is scheduled to report Q3 results on August 5, with Vestas Wind Systems (VWDRY)—the world's largest wind turbine manufacturer—and Ørsted (DNNGY) set to report a week later.
